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China to emerge as new center of auto supplies, says expert

chinadaily.com.cn | Updated: 2022-09-07 16:40
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Zhang Yongwei, vice-president of China EV 100, delivers a speech. [Photo provided to chinadaily.com.cn]

China, the world's largest market for new energy vehicles, is expected to become a new important center of the global auto supply chain, said Zhang Yongwei, vice-president of China EV 100, a major think tank in the new energy vehicle industry.

Zhang made the remarks in a speech at the Conference on Innovated Global Supply China of NEV and ICV held in Nanjing, capital of Jiangsu province from Tuesday to Wednesday.

Companies in China supplied over 50 percent of the world's new energy vehicles' power batteries in 2021, and roughly one-third of onboard displays came from China as well, said Zhang.

China has been the world's market for new energy vehicles since it overtook the United States in 2015.

In the first half this year, carmakers in China launched 33 passenger NEV models, accounting for 60 percent of all passenger vehicles they launched in the same period.

So far, there are around 300 NEV models in the Chinese passenger vehicle segment, roughly one third of all available models in the segment.

Of NEV buyers in China, 78 percent are private buyers, and 40 percent of NEV models feature Level 2 driving-assist functions.

"As onboard smart functions become increasingly common, China will play an increasingly important role in the global supply chain of electric and smart vehicles," said Zhang.

The global auto suppliers' output in 2021 stood at around 1.5 trillion yuan, of which 14 percent were about electrified and smart function-related parts.

The percentage of smart function-related parts will rise to 28 percent in 2025 and exceed 40 percent in 2030, said Zhang.

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